The Economic Crisis Requires Reduced Budgets
The economic crisis is requiring governments around the world to cut budgets. First affected by the social adjustment costs from Lithuania were mothers. In Estonia, the President wants to give an example and reduced his own salary. In Hungary, the victims of adjustment are primarily pensioners.
The cutting of social cost brought hundreds of mothers to protest in the streets of Lithuania. Latvian Minister of Labor and Social Protection explained that cutting allowance is a condition imposed by the International Monetary Fund for loan given to the country. The measure was taken after the Central Bank of Latvia announced for this year a budget deficit of 18 percent, with 6 percent higher than was estimated in January.
In Estonia, the President asked to reduce his salary of six thousand euro, with 8 percent. Will lower and wages of government members and officials from the ministries.
In Hungary, the value added tax was increased from 20 to 25 percent. In addition, was introduced a tax of 18 percent for basic food and heating. Excise duty on cigarettes, alcohol and fuel will increase from 5 to 6 percent. And pensioners will not benefit from the third retirement.